Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Beer market of Vietnam: “Young tiger”Vietnam is one of the few big beer markets that continue to grow steadily. The beer popularity results from its low price, street consumption culture, and social motives. The outlooks of beer market as well as the Vietnamese economy inspire optimism, though the country is heavily dependent on export of goods. The state regulation can be called liberal, but the key risk for brewers is harbored in intensive rising of excise. Within TOP-4 there are two leaders, Sabeco and Heineken that grow at the fastest rates. The first company effectively employs its capacities, the second one focuses on marketing technologies. Almost 80% of the market belongs to century-old brands, yet the middle class and the youth are shifting their interest toward international premium that is growing taking share from the mainstream.
Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Brandhouse refutes SAB’s market share claim
The battle for the country's beer market share highlights the intensifying beer war that has been ranging since Heineken NV terminated a contract allowing SAB to produce, market, sell and distribute Amstel lager in 2007.
SAB faces global brewing groups Diageo, Heineken International and Namibia Breweries Limited, which have re-entered the South African beer market via three-way joint venture Brandhouse.
Brandhouse markets, sells and distributes three established premium beer brands - Amstel, Windhoek and Heineken.
To entrench Brandhouse's market position, its two shareholders, Diageo and Heineken International, created Sadibeng Brewery in a bid to challenge SAB, their largest rival.
Gerald Mahinda, the managing director of Brandhouse, told I-Net Bridge/BusinessLIVE that the company had grown its market share slightly more than 12% to just below 14% of the total local beer market.
This is in contrast to SAB's latest figures.
On March 31, Norman Adami, MD and chairman of SAB, told I-Net Bridge that the brewer had clawed back to about 89% of market share in the past 12 months, from about 87%.
Before 2007, SAB had a historical average of about 98%.
Adami also admitted that Brandhouse was a "formidable" competitor that initially banged on SAB's door, demanding a 20% share of the beer market.
Underscoring the company's growth ambitions, Mahinda said the company planned to double capacity at its local production plant from three million hectolitres a year to six million hectolitres annually.
Brandhouse had increased its investment to EUR410 million from the originally planned EUR300 million in order to boost its capacity, he said.
The company would have ramped up production capacity to 4.5 million hectolitres annually by October 2011, he said.
Mahinda said Brandhouse was growing market share, declining to state what its market share target was.
"It is hard to set a target for market share because this is determined by a number of fundamentals including economic growth," he added.
However, he said the premium beer market was growing at almost triple the rate of the total beer market, at about 19%, reaching slightly over 23% share of the market segment.
Brandhouse's sales volumes grew 18% for the six months to February, compared with a comparable period in February 2010. Over the same period, the total South African beer market rose more than 7%.
Mahinda said Brandhouse, which also has Johnnie Walker in its brand portfolio, had a dozen competitors in the spirits and beer markets, noting that "we are in competition for the wallet".
Gavin Krenski, marketing director at Brandhouse, said the company intended to introduce new brands in market segments where it was underrepresented.
18 Apr. 2011